Local oil firms will implement hefty price hikes of P2.80 per liter for gasoline, P1.30 per liter for diesel, and P0.45 per liter for kerosene effective 6am Tuesday (Jan. 30) amid the ongoing issues in the world oil market.
The latest price movement is higher than what oil firms announced on Saturday of P2.30 to P2.50 per liter for gasoline and P1 to P1.20 per liter for diesel.
Department of Energy director for the oil industry management bureau Rodela Romero said the actual increase was higher than forecasted due to the $2 per barrel increase in oil prices on Friday. She said the freight cost and insurance premiums of shipping oil to the Philippines also increase for the products “because of the risk of transporting.”
“Same reasons. Escalating tensions in the Red Sea and Russia. The drop in US inventory and forecast of S&P Global Platts, IEA (International Energy Agency) and OPEC (Organization of the Petroleum Exporting Countries) of increase in global oil demand in 2024 due to China and India,” Romero said.
Prior to the latest increase, DOE data showed that gasoline prices at the National Capital Region averaged from P54 to P79 per liter, while diesel ranged from P52.20 to P68.45 per liter and kerosene sold from P71.64 to P83.03.
Pump prices vary depending on the location, brand, and market forces. On Jan. 22, oil companies increased the price of gasoline by P1.30 per liter and P0.95 per liter of diesel, but did not move kerosene prices.
The net price adjustment of both gasoline and diesel stands at a net increase of P1.60 per liter year-to-date. Kerosene, on the other hand, remains at a net decrease of P0.40 per liter.